Bahrain’s Ministry of Finance has announced that its overall budget deficit in 2024 is expected to narrow down to 161.4 million Bahraini dinars ($428.16 million) from a deficit of 520 million dinars in 2023. The latest budget statement shows that while total spending will remain at around 3.6 billion dinars for both years, total revenues are forecast to increase to 3.47 billion dinars in 2024 from 3.1 billion dinars in 2023, mainly due to an increase in oil and gas revenues.
Bahrain reported a GDP growth rate of 4.9% in 2022, the highest since 2013. Like its neighbors, Bahrain has been working on diversifying its economy away from oil, with non-oil GDP growing by 6.2% last year, the highest since 2012.
The government launched an economic recovery plan in October 2021, which includes a new “golden license” aimed at attracting large-scale investment projects to Bahrain and boosting growth and job creation.
$4 bn infrastructure projects
The latest state budget for 2023-2024 outlines a range of new growth and non-oil revenue-raising measures to drive sustainable development in the Kingdom. These plans include several infrastructure projects, such as the expansion of Bahrain International Airport and the establishment of a new port in the northern region of the country. New budget measures include the launch of more than 50 new fully-funded infrastructure projects worth more than 1.5 billion Bahraini dinars ($4 billion) over the next two years. The budget aims to ensure public finances remain stable while enhancing the quality of life for Bahraini citizens and making prosperity accessible to all.
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